It’s people not just process that will help shape customer experiences.
So much has been written about “the new consumer” and whether or not businesses are ready for the change that most business owners’ eyes glaze over when they hear these words now.
But what we often forget is that there are two very important changes happening at the same time and they’re connected.
There’s no question about the growing importance of the millennial generation (those born between the early 80s and mid-90s). According to Stats Canada, this population cohort made up less than 20 per cent of the population in 2013 and almost 25 per cent in 2017. The oldest among them are turning 37 this year and this makes them primary targets for vehicle ownership.
But don’t forget the other side of the equation.
Not only is the customer base changing, but I am sure that if you walk through your dealership today, you’ll notice a big change in the profile of your employees as well.
This will accelerate through the next decade at least and will present challenges — and opportunities — to help change the way business is done. The people interacting with your customers will be different, just as your customer base will be different.
Acceptance of job mobility is the biggest difference for employees.
We can go on forever listing what millennials want from a job. There have been multiple studies on the subject. But, depending on which particular study you look at, you’ll see conflicting views and conclusions.
This makes it challenging when you’re trying to shape internal policies and processes to ensure that these are aligned with your business objectives.
Underneath the apparent contradictions however, are some common themes and an indication that the fundamentals are still there — millennials want the security of a regular paycheque and benefits.
That doesn’t necessarily conflict with all the hype about thing like flexible hours, work-life balance, throwing out old workplace policies and relationships, etc.
The biggest difference is in how millennials view loyalty to their employers. In an interesting article published recently in Forbes magazine, contributor William Arruda says:
“Millennials are clearly less tethered to their current employer. They’re more likely to switch jobs when it makes sense. But when it comes to careers, steady work with compensation and good benefits, along with an opportunity to learn and grow, is a common thread that links all generations.”
The article also cites a Gallup study that found (amongst other things) that “millennials apply the mindset of change to the workplace. They want to be free of old workplace policies and performance management standards, and they expect leaders and managers to adapt accordingly”, and “a full 87 per cent of millennials say professional development or career growth opportunities are very important to them in a job.”
If we had asked Boomers thirty years ago the same questions, would we have heard different answers? I don’t think so. To me, the acceptance of mobility as part of a career is the most important difference by far.
What does this have to do with increasing customer satisfaction?
The assumption here is that employee satisfaction does indeed impact customer satisfaction. Research has shown clearly that employee satisfaction or engagement does indeed have an impact on customer satisfaction, but not necessarily in a linear way.
One of the most interesting studies I’ve seen looks at what aspects of employee satisfaction have the most impact. The study was done by a Korean (Hoseong Jeon) and an American (Beomjoon Choi) from Hallym University in South Korea and California State University respectively.
It caught my eye because one of the conclusions was that employee satisfaction leads to customer satisfaction, but not vice versa.
The people interacting with your customers will be different, just as your customer base will be different.
What I read into this is that the desired outcome (greater customer satisfaction) is very much in the dealership’s hands — happy employees will have a positive impact, but employees will not necessarily feel better if the customer is happy. Also that “organizational” measures taken will not necessarily have the same impact as hiring the right people with the right disposition.
The challenge
On the one hand then, we have a changing workforce which still needs the fundamental support of a good job with good benefits, but is much more open to the idea that a successful career path does not mean being wedded to one company.
On the other hand, we have a consumer base that is looking for transparency, consistency and the ability to trust and connect with employees in organizations that get their business. They too, will move easily if they do not get what they want.
This is a particularly tough challenge in the dealership world, where turnover rates in some departments (especially customer-facing departments) can be some of the highest of any industry.
The investment in acquiring, training and retaining human capital is high and when an employee leaves, the investment is lost. Customers notice when there is a high turnover rate in a business and while millennials have many different requirements, there is still the underlying need for consistency and trust.
